Just a reminder the city continues to hold triple A ratings from Moody's, S&P and Fitch. With stable outlooks from all three agencies. This is an incredibly rare distinction puts us in company of only about 30 other issuers throughout the country.

Our current percentage is back on par where where it was at about 2020. Overall, the city's debt burden remains manageable and on target with our capital budget.

President Brent, uh this is up quite a bit. I I like I said, I will have a lot more analysis for you prior to the sale authorization, but yeah, it's a combination of kind of carryover a lot of authorizations that hadn't been issued in the past. Those projects are now ready to begin construction and funds are needed to pay those expenses as well as kind of so an increased uh debt authorization for the 2026 program.

I would never say our rating is secure. I would say I don't think there's been monumental shifts in any of the underlying um economic and and financial conditions. I know they are looking at our reserve fund balances, the general fund balance. They're looking at the overall economy, unemployment, that stuff. So it all factors in.

The general fund is roughly about 40% of the city. It is starting to get down to its minimum um balance.

About a 33% decrease in the fund balance in 1 year. This $140 million fund balance does exceed the 17% minimum requirement that we have as an internal policy which uh was calculated at 109 million dollars at the end of 2025. So, while we do exceed our minimum fund balance, what we want to draw your attention to is the accelerated decrease over the course of 1 year.

The result that we're seeing is that we're collecting less revenue than historic to budget and we're expending more expenses than historical to budget. The end result is we're seeing this big decrease in fund balance.

So, for the fire department, they a primary driver of it actually is a lot of the leaves that they have. Um PTSD leave, paid family medical leave, paternity leaves, things of that nature.

So it seems like it's fairly safe to say at least in recent memory this combination of lack of revenue collection plus extreme over budget of a couple departments is is has put us in a fairly unprecedented situation in recent memory.

I have to say mea culpa, I did not anticipate that the general fund would decline this fast. And I think that's uh we didn't we didn't anticipate the police and fire overtime, and we didn't anticipate um the decline in collections, but um our property tax, but um was It's good to heed the um advice of our finance folks when they come to us.

The work plan identifies goals and objectives that you as a board wish to accomplish. Staff assignments within relate back to those objectives.

First of all, it facilitates discussion amongst the entirety of the board. Um I do realize we're from Minnesota, but sometimes we need to be direct.

If you don't like a particular strategic objective, please don't let it um mar you against the idea of a work plan. I think if the board has a work plan, that's a very good thing.